BUY sell RENT
Patna

Globally real estate is and would always be considered as an
income-generating asset. This article explores investment in real
estate in Patna from the perspective of NRIs.

FEMA- Permissible investments for NRIs

As per the provisions of Foreign Exchange Management Act (FEMA),
NRIs can freely invest in real estate in Patna as follows:

Upto 100% in an Indian company in the business of real
estate development inPatna with full
repatriation benefits i.e. both the business profits and sale
proceeds of original investment can be repatriated. Real estate
development means construction of residential and/or commercial
properties, office complexes, etc. Mere trading in properties is
not permitted. Further construction of farmhouses is not
permitted.

Acquire residential/ commercial properties in India by way of
purchase/ gift/inheritance from a resident Indian or a NRI.
Agricultural land, plantation and farmhouse cannot be acquired by a
NRI except by way of inheritance. There are no restrictions on
letting out of properties and repatriation of income thereon after
payment of taxes. The provisions relating to repatriation of sale
proceeds are as follows:

1)Sale proceeds of property acquired by way of inheritance can
be repatriated without any lock in period upto USD 1 million per
calendar year.

2) Sale proceeds of property acquired out of Rupee resources is
permitted to the extent of USD 1 million per calendar year subject
to the condition that the property/ sale proceeds of property
should have been held in India cumulatively for a period of 10
years.

3)Sale proceeds of immoveable property acquired out of forex
resources can be repatriated without any lock in period to the
extent of equivalent foreign exchange originally invested. The
profits can be repatriated to the extent of USD 1 million per
calendar year. In case of residential properties, repatriation is
restricted to two such properties. The limit of USD 1 million per
calendar year is a consolidated limit.